Pendo, an up-and-coming software startup that raised $20 million in venture capital funding in December, plans to expand its staff by roughly 50 percent after raising an additional $25 million from investors.
Co-founder and CEO Todd Olson said that the company, which is headquartered in downtown Raleigh and has 106 workers, expects to add more than 50 new hires over the next six months. In addition, Pendo also will use the funding to shop for acquisitions that could accelerate its growth.
Pendo’s cloud-based technology helps business customers improve their software by providing feedback on what features their customers are using and which ones they’re ignoring It also issues pop-up messages to software users notifying them of features they may not know about.
“Our focus is helping our customers create great customer experiences,” Olson said.
The privately held company reports that revenue from hundreds of software customers such as Citrix and Gainsight more than quadrupled last year.
“We’re at the right time in the market for what we do,” Olson said. “This notion of product experience is becoming really critical to a lot of companies. When you don’t know how customers are experiencing your product, you don’t know how to steer it.”
Having just raised a round of funding at the end of last year, Pendo wasn’t actively seeking another infusion of capital. But Olson said that lead investor Meritech Capital Partners, a Silicon Valley venture capital firm, approached the company with “a very good offer.”
The new funding, he added, “allows me to focus on continuing to grow the business. As you know, fundraising takes a lot of time.”
Pendo also recently opened its first satellite offices – in New York and San Francisco. Since it was founded in late 2013, the company has raised a total of $56 million from investors.